In this post, we will go over the key benefits of these loans and things to know when considering this type of loan. 

Benefits of Getting Funds from a Loan Against Securities 

The following are the advantages of availing a Loan Against Shares: 

• Low Interest Rates 

The reduced interest rate is a key advantage of obtaining LAS. It generally offers lower interest rates as compared to unsecured loans or Credit Cards. Since they are backed by your investments, it is less risky for lenders and provides attractive interest rates. 

• No Need to Sell Your Investments

The best part about taking LAS is that you can access cash without selling your investments. This allows you to meet financial needs while continuing to benefit from potential market growth. 

• Fast and Simple Handling

Getting a loan against your securities is quick and hassle-free, as the loan is secured by the value of your holdings, and doesn’t need lots of paperwork like proof of income or a good credit score. After you submit your application and your securities are evaluated for their worthiness as collateral, the loan request process starts immediately, with the disbursal of funds taking place within 1 or 2 days. This makes an ideal choice for those in need of financial assistance and looking to avoid the delays associated with lengthy approval procedures. 

• No Impact on Credit Score

While basic credit checks are conducted to assess repayment behavior and past loan history, a Loan Against Securities does not heavily rely on credit checks. You can secure a loan against securities even with a lower credit score if you have adequate investments to pledge. 

Things to Know About Loans Against Securities?

• Selecting the Right Lender 

Different lenders offer varying terms for Loans Against Securities, including interest rates, eligibility criteria, and repayment options. Comparing lenders helps secure the most favourable terms. If you already have a Demat account with a financial institution, applying with the same lender can simplify and speed up the process.   

• Familiarise Yourself With the Eligibility Needed  

Make sure to review the lender’s eligibility requirements before you submit your application. 

Criteria to consider include:-

1. You must be minimum 18 years old to apply for the loan.   
2.  Individuals, Hindu Undivided Families (HUFs), companies, partnerships, sole proprietors, trusts, and societies can apply for LAS based on the type of security.    
3. Make sure to have your identification documents, such as an Aadhaar card and address proof, along with income proof, handy.    

• Retain Ownership and Rewards 

Pledging your securities for a loan allows you to access funds without losing ownership. You continue to receive dividends, bonuses, and potential share allotments while benefiting from market appreciation. This enables you to meet financial needs without compromising your long-term investment goals.  

• Stay Informed About Any Costs and Charges  

In addition to the interest rates involved in LAS, there might be certain added fees to consider such as processing fees or account closure charges among others. Some financial institutions may even offer the benefit of no prepayment penalties allowing you to settle your loan earlier without any costs involved. Being aware of these fees enables planning leading to avoiding any surprising expenses later on.  

• Loan Amount and Interest Rates

The loan amount you can avail of depends on the market value and type of pledged security. Leading banks like ICICI Bank may offer 50% to 80% of the market value of the security, depending on the security type. It’s worth noting that the interest rates for these loans are lower compared to unsecured loans, making them a more budget-friendly choice. Rates may differ from one lender to another, so it’s advisable to compare offers to find the one.   

• Plan Your Repayment

Loans Against Securities provide repayment options that cater to your needs and preferences.LAS is offered as an overdraft facility which charges interest only on the amount you utilise and the time you utilise it for. You can customise the repayment plan as per your financial standing and budget. It means you are required to pay only the interest on the due date, while the principal repayment can be made at your convenience or when you have surplus funds. This allows for flexibility in managing your finances and avoiding unnecessary fees or penalties with proper planning of your repayments.   

Conclusion 

LAS is one smart financial method that allows you to access the value of your investments without having to sell them. Your banks offer these loans, where you can take out a loan using your securities as collateral to the lender. It allows your assets to continue growing and gives you access to money when you need it, all while offering benefits like flexible repayment terms and attractive interest rates. 

Term Deposit Explained

A Term Deposit, as the name suggests, is a type of investment where you put your money for a certain period known as the term. Throughout this time, your money grows at a fixed interest rate that doesn’t change with market fluctuations. 

After the term has matured, you can get the amount invested with the earned interest over your principal amount. Investors who value stability and reliability often opt for term deposits to secure a risk-free return, making them a popular choice. 

Key Features of a Term Deposit

• Fixed Tenure

These are short-term deposit accounts that allow you to specify the duration of your investment when you start the account. You can choose the tenure that best suits your long-term financial goals. After you decide on the tenure of your term deposit, your money is locked in for that period.

• Fixed Interest Rate

When you start a term deposit account, the interest rate stays the same for the investment time frame, which offers reliability since your earnings are not impacted by market ups and downs or economic shifts. For example, when market interest rates go down following the start of your term deposit, you will still receive the agreed-upon rate. 

• Assured Returns

A major feature that attracts individuals to term deposits is the promise of assured returns on their investment. Having a fixed interest rate in place for the duration of the deposit term ensures that investors are aware of the amount they will receive upon maturity. It makes term deposits a favoured choice for investors who value security and reliability. 

• Premature Withdrawal

Term deposits are usually designed to be kept until the selected period ends. However, banks like ICICI Bank offer the option for withdrawal if you require access to your money before the agreed-upon maturity date. The choice to withdraw offers flexibility in emergencies so that you’re not completely cut off from your funds, however, it’s crucial to strategise before accessing the term deposit to prevent incurring penalties. 

• Low Risk

Term deposits are often viewed as a safe choice as they are not affected by the fluctuations of stock markets or Mutual Funds, which makes them a stable option with returns that appeal to those seeking stability and aiming to steer clear of riskier investments. 

Strategies to Maximise Your Returns with a Term Deposit

1. Choose the Right Type of FD  

Banks offer different types of term deposits, including regular FDs, tax-saving FDs, senior citizen FDs, and Flexi FDs. If you are looking for tax benefits, a tax-saving FD under Section 80C is ideal. Selecting the right FD based on your needs ensures better returns.  

2. Use the Laddering Strategy  

Instead of investing a lump sum in a single FD, divide it into multiple FDs with different maturity periods. This strategy allows you to reinvest maturing FDs at higher interest rates if rates increase. For example, instead of investing ₹1,00,000 in a single 5-year FD, split it into five ₹20,000 FDs maturing at different times. This ensures liquidity and better returns.  

3. Consider Sweep-In FDs for Flexibility  

A Sweep-In FD links your Savings Account with a term deposit. Any extra balance in your Savings Account is automatically transferred to the FD, earning higher interest. If you need money, only the required amount is withdrawn from the FD, while the rest continues earning interest.  

4. Invest When Interest Rates Are High  

With the recent increase in repo rates in 2025, interest rates on Fixed Deposits (FDs) have also risen. Keep an eye on rate trends and invest when rates are high. If rates are expected to rise, consider short-term FDs and reinvest later at higher rates. During high-rate periods, long-term FDs are the best choice.  

5. Use FD Lien for Loans Instead of Premature Withdrawal  

If you need money urgently, don’t break your FD. Instead, take a loan against your FD. This way, your FD continues earning interest while you access funds at a lower loan interest rate. It’s a smarter way to manage liquidity without losing returns on your FD. 

Conclusion 

Investing in Term Deposits is an intelligent way to grow wealth. With smart investment selection and some strategic intervention, you can efficiently achieve goals. A short-term FD can act as a reliable cushion that provides you with instant cash and interest at a constant rate. By following the economic trend of interest rates, you can enter the market at a more opportune time for reinvestment with a potential for greater yields again. With these methods employed, you can set up a strong foundation for investments concerning the stability and flexibility of your present and future considerations.

An Overview of the National Pension System

Launched by the government in 2004 as a retirement savings fund, the NPS is managed by the Pension Fund Regulatory and Development Authority (PFRDA). Individuals can save for retirement while benefiting from tax savings with NPS.

Upon retirement (60 years unless deferred), subscribers can use their accumulated funds to purchase an annuity, which provides a steady income, while withdrawing a portion of their savings as a lump sum. The flexibility and focus on disciplined savings make NPS a preferred choice for anyone seeking a safe, long-term retirement solution.

There are two types of accounts available: Tier-I, which is mandatory with restricted withdrawals, and Tier-II, which is voluntary and allows for flexible withdrawals.

Advantages of Putting Your Money in NPS

Here are the few advantages of investing in NPS which make it ideal for retirement planning:

Affordable Investment Option

Opting for NPS over other retirement plans offers the advantage of lower fees due to its minimal expense ratio. As a result, a larger portion of your investment is directed towards the fund rather than being consumed by administrative charges.

Diversified Portfolio

NPS allows you to invest in a diversified portfolio, including stocks, government bonds, and corporate bonds, offering opportunities for growth based on market performance.

Varied Contributions

NPS does not restrict how much or how often you can contribute. There is no upper limit on contributions, allowing you to invest as per your financial capacity. At age 60, you can withdraw up to 60% of your savings as a lump sum, and the remaining 40% can be used to purchase an annuity plan.

Tax Advantages

NPS tax benefits are one of the main reasons investors choose it. These advantages vary depending on the contributor’s employment status and the amount contributed to their NPS account.

NPS Tax Benefits Explained

Here are the different ways the National Pension System for tax benefit works:

Employee Contributions

• Section 80CCD(1): Employees who pay taxes can claim a deduction of up to 10% of their salary (Basic + Dearness Allowance), but this is subject to an overall limit of Rs. 1.5 Lakh under Section 80CCE.
• Section 80CCD(1B): Employees can claim an additional deduction of up to Rs. 50,000 for NPS contributions. This deduction is additional to the Rs. 1.5 Lakh limit in Section 80C. This offers an opportunity to maximise tax benefits for investors.

Employer Contributions

Section 80CCD(2): When an employer contributes to an employee’s NPS account, private sector employees can claim a tax deduction for the employer’s contribution of up to 10% of their salary (Basic + Dearness Allowance) under Section 80CCD(2). For central government employees, this deduction is up to 14%. This is over the limit of Rs. 1.5 Lakh under Section 80CCE.

Self-Employed Individuals

• Section 80CCD(1): Self-employed individuals can claim a tax deduction of up to 20% of their gross income under Section 80CCD(1), within the overall ceiling of Rs. 1.5 Lakh under Section 80CCE.
• Section 80CCD(1B): In addition to the Rs. 1.5 Lakh limit in Section 80CCE, self-employed individuals can also avail of a tax deduction of Rs. 50,000 for their contributions to NPS under Section 80CCD(1B).

Tax Benefits on Withdrawals

• Section 10(12B): Employees can withdraw up to 25% of their contributions for specific purposes, like funding children’s education, marriage, purchasing a home, or during emergencies, without paying taxes.
• Section 80CCD(5): Amount used to purchase an annuity upon attaining the age of 60 or superannuation is eligible for tax deductions.
• Section 10(12A): Once an individual turns 60, they can withdraw 60% of their accumulated corpus tax-free. The remaining 40% must be used to purchase an annuity plan. The income received from the annuity is taxable as per the individual’s applicable income tax rate at that time.

Conclusion

The National Pension System (NPS) offers a flexible and customisable approach to saving for retirement while helping to minimise tax obligations. The system provides substantial NPS tax benefits for both employees and self-employed individuals, allowing for deductions under Sections 80C and 80CCD(1B). Additionally, NPS offers various investment options linked to market performance, enabling subscribers to choose their investment strategies according to their risk tolerance and financial goals. It also offers flexibility in contributions and withdrawals, making it a valuable tool for long-term retirement planning.

Overview of TNEB Bills Online 

The Tamil Nadu Electricity Board manages power generation and distribution across Tamil Nadu. With TNEB online bill payment, customers can pay their power bills quickly and easily. Digital platforms eliminate the need for physical visits, allowing users to view and pay their bills instantly without standing in queues.  

By using online payment methods, you can be assured that payments are made on time which in turn helps prevent late penalties and service disruption in the future. Additionally, online payments allow you to track your transactions and receive instant confirmation making bill management more convenient.

You can pay your TNEB bill online using the digital channels of major banks like ICICI Bank. For a seamless TNEB online payment experience, you can use Internet Banking or a mobile banking app such as the iMobile app. This allows you to make quick payments and receive instant receipts for future reference.

Reasons to Pay Your TNEB Bills Online 

Paying your TNEB bills online offers convenience, security, and multiple benefits. Here are some  of the reasons to choose digital payments:

• Time-Saving and Ease of Payments  

Paying TNEB bills online simplifies the process, saving time and effort. You can avoid visiting the TNEB office or standing in long queues. Online payments offer flexibility, allowing you to manage your electricity bills efficiently and ensure timely payments without delays.

•  Easy Accessibility

You can easily access your Internet Banking or mobile banking to make TNEB bill payments from anywhere and anytime. Online payments allow you to settle your bill at your convenience without geographical or time constraints.

• Multiple Payment Options

You have multiple options to make online payments for TNEB bills. You can choose from options like Savings Account, Credit Cards and PayLater, which gives you the freedom to choose a method that’s most convenient for you.

• Instant Transaction Confirmation

Once your payment is processed, you will receive an instant confirmation message either via text on your registered phone or email. This provides peace of mind by providing immediate proof of payment and eliminating any doubts or concerns.

• Safe and Secure Payments

When paying your TNEB bills online through various platforms, security is a top priority. You can now settle your bills securely with advanced encryption technology that protects your information from fraud or data leaks. 

Handy Tips for a Stress-Free TNEB Online Bill Payment

Make your TNEB online bill payment smooth and hassle-free with these handy tips:

• Have Your Consumer Number Ready

Make sure you have your consumer number ready when you are paying online. This information is crucial for identifying your account quickly. You can locate this number on your TNEB electricity bill. 

• Choose Only Trusted Platforms 

For a safe payment process every time you make a transaction online, choose trusted and legitimate platforms like the ICICI Bank Internet Banking or the iMobile app for smartphones. These options offer secure transactions by using encrypted connections to protect your important payment information. 

• Cross Check Payment Details  

Before you finalise your payment, make sure to review all the information such as your customer number, payment amount, and method of payment you intend to use to avoid any potential payment processing challenges. 

• Set Reminders for Bill Payments

Missing your TNEB bill payment deadline can lead to penalties or service disruptions. To avoid this, consider setting up timely reminders. Digital platforms from leading banks like ICICI Bank, offer services that send alerts for registered bills, ensuring you never miss a due date. Additionally, you can set up AutoPay through your Internet Banking or mobile banking app, allowing automatic payments of your TNEB bills on the due date. This proactive approach helps prevent late fees and service disruptions.

Steps to Pay Your TNEB Bill Online

With the mobile banking app 

• Log in to the banking app like the iMobile app
• Go to the ‘Bill Pay, Recharge & FASTag’ section
• Select ‘Electricity’ category
• Search & select ‘Tamil Nadu Electricity Board’ from the providers 
• Enter the consumer number to fetch the bill for payment
• The details of the bill will appear on the screen. (Here, you can set up the Auto Pay facility to pay the bills for the subsequent months automatically)
• Select the preferred mode of payment such as a Savings Account, Credit Card or PayLater.
• Click on ‘Pay Bill’ and complete the payment.
• A success message will appear on your screen. You can then view the details and download the payment receipt.

With Internet Banking 

• Sign in to your internet banking account. 
• Go to ‘Pay Bills’ under ‘Payments & Transfer’.
• Choose “Electricity” from the list of options. Select TNEB as your provider. 
• Input your consumer number to fetch the bill for payment. 
• The details of the bill will appear on the screen. (Here, you can set up the Auto Pay facility to pay the bills for the subsequent months automatically)
• Select the preferred mode of payment such as Savings Account, Credit Card or PayLater.
• Enter the OTP and click on ‘Pay Bill’ to complete the payment.
• A success message will appear on your screen. You can view the details and download the payment receipt.

Conclusion 

Now, with the rise of digitalisation, it is easier than ever to settle your Tamil Nadu Electricity Board online payment. Multiple digital platforms allow you to pay conveniently while saving time and avoiding long queues at physical offices. By following the above tips, you can also avoid penalties on delayed payments and ensure a hassle-free billing experience.

Forex Card Explained

Forex Card or foreign exchange is useful when you travel to multiple countries and need a solution to manage your funds without having to check currency rates for each transaction or withdrawal. It is a prepaid card, loaded with foreign money that can be used at multiple retailers and ATMs worldwide. 

Features of Forex Card

• Easy Usage 

Convenience is a major advantage of having a Forex Card as it makes it easy to carry several currencies on one card when travelling across continents. The card allows you to top up currencies like USD, EUR, GBP, JPY, and others, which is very helpful for business travellers and tourists. 

• No Additional Charges 

When using a Forex Card abroad, it​ ensures you stay clear of the high currency conversion fees that often come with using Credit or Debit Cards issued by your bank. Charged during each purchase made overseas​, Forex Cards keep you away from these fees since you preload them with foreign currency before embarking on your journey​. 

• Fixed Exchange Rates

When you use a Forex Card, you have the benefit of securing exchange Forex Card charges at the moment of card loading. It protects you from currency fluctuations during periods of economic instability when rates can unexpectedly increase.

• 100% Secure Transactions 

When you are travelling abroad, it’s safer to use a Forex Card instead of carrying cash​​​​​. Losing cash can be stressful while you are abroad​. If your Forex Card goes missing​​​ you can simply block it and request a new card. ​You can expect high security with these cards like PIN-based and two-factor authentication systems.

• ATM Access Worldwide

Using a Forex Card to take out cash is also very easy. You can easily take out currency from ATMs in the country you are travelling to. It ensures that you will always have cash handy whenever you might need it.

Who Can Use Forex Cards?

• People who travel to foreign countries quite often can use this card for seamless transactions.

Foreign Currency Explained 

Foreign currency means the physical cash or local currency of the country you’re visiting. You need cash to buy basic things like food, shopping and travelling in local transportation. 

Features of Foreign Currency

• Physical Cash for Travel

You can use foreign currency when travelling abroad for amenities like food, transportation, shopping, etc. You can withdraw the money in cash and carry it physically for such expenses.  

• Exchange Rates Impact Your Money  

It is important to note that foreign currency depends on exchange rates. The foreign currency fluctuates as per market conditions. The rate at which you convert your home currency into foreign cash may vary daily, affecting the amount you receive.  

• Limited Usability Outside the Issuing Country  

Foreign currency cash is only valid in the country where it is issued. If you have leftover cash after your trip, you may need to exchange it back to your home currency, often at a different rate.  

• Risk of Theft or Loss

Carrying a large amount of physical cash while travelling can be risky. Losing cash or having it stolen means there is no way to recover it, making it essential to carry money safely or use alternative payment methods.  

• Not Suitable for Online Payments  

Unlike Forex Cards or Credit Cards, physical foreign currency cannot be used for online purchases, limiting its usability in a digital-first world.

Who Can Use Foreign Currency?

• Tourists who prefer cash over digital payments.

Key Differences Between Forex Card and Foreign Currency 

Which Option to Choose?

When travelling abroad, deciding between a Forex Card and physical foreign currency depends on your travel needs and spending habits. Each option has its advantages, and the right choice depends on convenience, security, and usability.  

1. Forex Card 

A Forex Card is a prepaid travel card that allows you to load multiple foreign currencies and use them to make payments. It is ideal for travellers who prefer convenience, security, and ease of transactions.  

– Better exchange rates: Fixed rates at the time of loading, protecting against fluctuations.  

– Security: PIN-protected, reducing the risk of theft or loss.  

– Usability: Works for shopping, dining, and online transactions worldwide.  

2. Foreign Currency Cash

Carrying some amount of physical foreign currency is essential for places that don’t accept cards, such as local markets, taxis, and small restaurants. However, it comes with risks like theft or unfavourable exchange rates.  

Conclusion

Foreign currency and Forex Card serve a unique purpose when travelling abroad. These are two important tools that are needed during expenses and transactions in a different country. Foreign money is actual cash that may be used while travelling to a certain nation. When you travel for vacation, research, or business, a Forex Card provides a smooth payment experience in multiple countries. Choose wisely and have a stress-free journey.